The speculative demand for money is the stock of money that people hold to:
A) pay their predictable, everyday expenses.
B) pay for any unexpected expenses that may occur.
C) buy stocks, bonds, and other financial assets.
D) buy the foreign currencies needed to purchase imports.

Question

Quizplus · Accepted Answer

The speculative demand for money refers to the money held for the purpose of investing in financial assets like stocks and bonds, based on expectations of future changes in interest rates or asset prices.

The Speculative Demand for Money Is the Stock of Money